Purpose of Mahila Udyam Nidhi

The purpose of Mahila Udyam Nidhi is to help women entrepreneurs meeting equity funds requirement will setting up a new business.

Eligibility Criteria

All existing and new MSME or Tiny Units promoted exclusively by women entrepreneurs or a business consisting of majority of women entrepreneurs are eligible. Mainly the scheme helps women entrepreneurs for setting up new projects in tiny or small scale sector and rehabilitation of viable sick MSME businesses. Existing tiny and small scale business in manufacturing and service sector (except road transport operators) satisfying the investment ceiling (Rs.5 lakhs investment) prescribed for tiny enterprises and under expansion, modernisation, technology upgradation and diversification are also eligible for the scheme.

Project Profile

To be eligible for the Mahila Udyam Nidhi scheme, the cost of the project must not exceed Rs.10 lakhs. In such cases, a soft loan limit of upto 25% of the project cost, subject to a maximum of Rs.2.5 lakhs per project is provided for deserving women entrepreneurs. The soft loan would be repayable within 10 years (inclusive of initial moratorium period of not more than five years). However, the period of repayment of soft loan will be co-terminus with that of term loan sanctioned by a scheduled bank.

Cost of Financing

In case of a soft loan, only service charge @ 1% p.a. is payable, which may be retained by lending office. As for the term loan, the interest rates will be as advised from time to time or be structured under the refinance scheme as fixed by SIDBI from time to time.